How can I get a bridging loan for a property in Spain?

Bridging Loans For Spanish Property

Spain is a popular destination for many, and there are increasing numbers of British expats who reside there. However, financing property abroad comes with additional challenges -whether you're downsizing to relocate permanently, buying a second property or buying a holiday home. 

What are the benefits of financing property abroad through a bridging loan?

Bridging loans are a popular finance alternative for UK property owners looking to move to Spain – either for permanent residency or purchasing a holiday home. 

The purpose of bridging loans is to “bridge the gap” in funding (typically between the buying and selling of property) until long-term financing can be arranged. These loans are quick, short-term loans – usually 12-month terms - that provide a significant amount of capital.

Another benefit is the possibility of “rolled-up” interest - which can be paid at the end of the term instead of monthly. This avoids the need for regular payments that could hinder the purchase of your Spanish property.

For these reasons, a bridging loan offers the solution in its speed and flexibility. It provides the necessary funds for borrowers to act in the competitive market of Spanish property.

Ultimately, bridging finance allows you to secure funds and buy before you sell - allowing repayment with the proceeds acquired from the eventual sale of your UK property. 

Traditional lenders may hinder the process

The time it takes to sell a property is dependent on several factors – its location and the potential pool of buyers, to name a few. In addition, roadblocks are a concern when going the route of traditional finance, which may ultimately hinder the application and delay your move to Spain. 

High street banks and building societies can take up to months to process applications – especially with the added prospect of moving abroad. 

Alternatively, bridging finance can be processed within a week (depending on circumstances), and your intention to move to Spain will not affect the application.

How do I use a bridging loan if I already reside in Spain?

If you currently reside in Spain and are looking to downsize, getting a Spanish mortgage may be challenging. Primarily because the UK’s Financial Conduct Authority (FCA) does not regulate Spanish mortgage brokers; consequently, if complications arise, you won’t be covered for compensation. 

Similarly, this is true for Spanish bridging loan brokers, as to secure a bridging loan against UK property, you must go through an FCA-regulated loan broker within the UK. 

This process is simplified when dealing with the right UK-based broker - we can help clients arrange bridging loans against UK property when you currently reside in Spain and offer clients tailored solutions to any individual circumstance.

Get ahead on currency exchange

When considering a move to Spain, or any country abroad, it is helpful to get ahead of a property transaction by transferring funds into the necessary currency – via a Forex company or foreign exchange. 

You can often get the best exchange rate, lower fees, and mitigate fluctuating currency when organising this in advance – which may be essential in avoiding any additional delays when purchasing a property in Spain.

How can I get a bridging loan for Spanish property?

Bridging finance abroad is much the same process as it is with UK Property – the security offered to lenders must meet their criteria, and you must ensure a solid repayment plan in the form of a property you wish to sell. 

We can help bring the right lenders to appraise your situation, increasing the chances that a lender will consider your circumstance for a loan. 

Contact our team of specialist brokers to secure the best bridging loan

As specialist property finance brokers, we have access to a network of specialised lenders in the short-term finance market. We have assisted UK-based individuals, alongside those who reside in Spain, in both moving abroad with bridging finance and easing the process of securing bridging finance when clients live abroad.

We can help clients arrange bridging loans against their UK property by finding a suitable lender while keeping interest rates down and tailoring our solutions to fit your circumstance best.